Helang Air Berhad (Helang Air) is an airline company listed on Bursa Malaysia. The business has grown rapidly since its establishment seven years ago but in the recent periods it has been criticised for under-investing of its non-current assets. Assume you are working for Helang Air and you have been tasked to prepare a ratio analysis based on the comparative financial statements of Helang Air. Extracts from Helang Airs financial statements are as follows: Statements of financial position as at 30 June: 2020 2021 RM'000 RM 000 ASSETS Non-current assets Intangible assets 32.000 40,000 Property, plant and equipment 348.000 634,000 380,000 674.000 Current assets Inventories 980 1.160 Trade and other receivables 12,600 12,200 Cash and cash equivalents 44.200 18.600 57,780 31,960 Total assets 437,780 705,960 LIABILITIES Non-current liabilities 6% loan notes 300.800 261.920 Current liabilities Trade and other payables 6% loan notes 8,500 38.880 47,380 20.960 38.880 59,840 EQUITY Equity shares Retained earnings Revaluation surplus 6,000 83,600 Nil 89,600 437,780 6,000 88,200 290.000 384,200 705,960 Total liabilities and equity 1 Other extracts from Helang Airs financial statements for the years ended 30 June: 2020 RM000 Revenue 318,000 Profit from operations 37,200 Finance costs (20,400) Cash generated from operations 48,620 2021 RM'000 308,000 24,600 (18,400) 36,960 The results of the ratio analysis are as follows: Gearing (Debt/Equity) Current ratio Interest cover Net asset turnover Operating profit margin Return on capital employed As at 30 June 2020 379.1% 1.22:1 1.8 times 0.74 times 11.7% 8.7% As at 30 June 2021 78.3% 0.53:1 1.3 times 0.45 times 8.0% 3.6% The flight schedule, the number of flights and destinations were the same in both 2020 and 2021. Helang Air is currently negotiating with the nine major airports to renew its licences that are due to expire in November 2021. The licence will give Helang Air the right to operate flights in the respective airports. Required: 1. Prepare a list of comments on the financial performance and position of Helang Air for the year ended 30 June 2021. 2. Explain any issues that Helang Air should be considering in the near future